Businesses want to see a high-pay, high-skill economy

Commenting ahead of a speech by Labour Leader Ed Miliband today on the National Minimum Wage, Dr Adam Marshall, Executive Director of Policy at the British Chambers of Commerce (BCC) said:

“A substantial majority of businesses believe the National Minimum Wage should rise as the recovery continues, but only on the basis of careful evidence and implemented alongside sustained investment in training by businesses and government alike. Companies want a high-pay, high-skill economy, not a low-skill economy with rocketing wage bills.

“There is a clear risk that ahead of next year's General Election, politicking around the minimum wage by all three major parties could lead to unaffordable promises that cost jobs and growth. The Low Pay Commission must be allowed to get on with its job and base recommendations on clear economic evidence, not political promises.

“Law-abiding businesses will cheer proposals for stronger enforcement of the National Minimum Wage, to prevent a small number of unscrupulous companies undercutting those doing the right thing. They will also welcome greater engagement with the Low Pay Commission on ways to boost productivity and wages together."